Investment Thesis
PAID INC exhibits a structural profitability problem: despite 11.4% revenue growth to $20.7M, the company generated negative operating income (-3.2% margin), negative free cash flow (-$55.6K), and deteriorating net income (EPS down 144.4% YoY). The current ratio of 0.85x signals liquidity stress, indicating operating losses are consuming cash faster than growth can generate value.
Strengths
- Top-line revenue growth of 11.4% YoY demonstrates market demand
- Gross margin of 22.4% shows underlying product profitability potential
- Zero long-term debt eliminates refinancing risk and provides financial flexibility
Risks
- Operating margin of -3.2% and widening net losses indicate inability to scale profitably despite revenue growth
- Negative operating cash flow of -$53.2K despite positive revenue; company burns cash from operations
- Current ratio of 0.85x reveals liquidity stress—current liabilities exceed current assets, risking operational disruption
- Deteriorating earnings (EPS -144.4% YoY) suggests operational headwinds are accelerating, not improving
Key Metrics to Watch
- Operating cash flow trend—critical to determine if cash burn improves with revenue scaling
- Operating margin progression—must improve to achieve profitability sustainability
- Current ratio—monitoring whether liquidity stress worsens or stabilizes
Financial Metrics
Revenue
20.7M
Net Income
-368.2K
EPS (Diluted)
$-0.04
Free Cash Flow
-55.6K
Total Assets
8.3M
Cash
1.1M
Profitability Ratios
Gross Margin
22.4%
Operating Margin
-3.2%
Net Margin
-1.8%
ROE
-6.6%
ROA
-4.4%
FCF Margin
-0.3%
Balance Sheet & Liquidity
Current Ratio
0.85x
Quick Ratio
0.85x
Debt/Equity
0.00x
Debt/Assets
33.0%
Interest Coverage
-206.82x
Long-term Debt
N/A
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-04-14T00:57:20.109433 |
Data as of: 2025-12-31 |
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